Welcome!

Microservices Expo Authors: Derek Weeks, Mehdi Daoudi, Pat Romanski, Liz McMillan, Elizabeth White

Related Topics: Microservices Expo

Microservices Expo: Article

Why Services Are Like Craigslist

And why the big software vendors will be singing the blues

I caught a review in Fast Company of an interview that Craig Newmark of Craigslist had with ABC's Nightline News. I didn't see the interview myself, but Fast Company did a good job highlighting the more important points, including the fact that Craigslist, which offer free classified ads, is killing the local newspapers.

Get this:
"...There was the complaint that the site is hurting the newspaper business, stealing away those who would buy classified ads. According to Nightline, this shift has created an annual loss of $50 million in San Francisco alone."

Fast Company further says:

"Why must Newmark and Craigslist answer for the papers' failings? Craigslist has become one of the top Web sites in the world (three billion page views per month) as new features and additional cities have been added to the line-up. Users preach the virtues of the free classified service. I think Craigslist shows the value of presenting people a free service with wide capabilities (Google also comes to mind). If anything, traditional media should learn from such online innovators and adapt more quickly to the new landscape, rather than complain about it."

Exactly, and spot on! He who creates the best innovative and cost-effective service wins the game. This includes Google, eBay, Amazon, and, of course, Craigslist. Moreover, this is also very much like the battle brewing between the traditional software powerhouses and the up-and-coming Web Services marketplace, including guys such as StrikeIron, Salesforce.com's AppExchange, and NetSuite's NetFlex.

While most SaaS providers and service marketplaces don't give away business applications and services like Craigslist gives away classified ads, the number of free or cheap business services available on the Web is expanding rapidly. For instance, I'm not sure you can buy better or more cost-effective mapping software for a business than Google Maps or create an auction site better than eBay, and those services are free or inexpensive, and best of all they're on-demand.

Moving up, you have guys like Saleforce.com and NetSuite who are providing world-class CRM applications as a service, using a subscription model that's only a fraction of the cost of traditional enterprise applications. Moreover, you have the emerging Web Services marketplaces that are providing application services that you can mix and match into composites using similar subscription models, again, at only a fraction of the price of buying complete packages or building those services yourself.

In addition, the notion of mash-ups is going to push this along even faster as we learn how to mix and match both content and services to create new abstractions for use in hybrid Web-delivered applications and in the enterprise through emerging SOAs. We could get to a point were most application services actually exist outside the enterprise and thus enjoy the resulting reduction in costs and the ability to leverage best-of-breed applications. This is the final destination of Web 2.0.

So, in the same way that the large newspapers are complaining about new free on-demand services such as Craigslist, it's clear that the larger software vendors are going to be singing the same blues and will have to adapt to survive as things move quickly to a SaaS model. In fact you may find that many of the major SaaS players are sucked up by the larger software guys to hobble this trend or to buy into this emerging market. Sometimes I wonder if they see this coming.

What's key here is that organizations can get better IT services through this trend and at a reduced cost of development and deployment. Moreover, as businesses change, the need to maintain both an architecture and a new paradigm is going to be critical, including developing their SOA as a platform for business processes and leveraging outside services (SaaS) to complete these processes.

More Stories By David Linthicum

Dave Linthicum is Sr. VP at Cloud Technology Partners, and an internationally known cloud computing and SOA expert. He is a sought-after consultant, speaker, and blogger. In his career, Dave has formed or enhanced many of the ideas behind modern distributed computing including EAI, B2B Application Integration, and SOA, approaches and technologies in wide use today. In addition, he is the Editor-in-Chief of SYS-CON's Virtualization Journal.

For the last 10 years, he has focused on the technology and strategies around cloud computing, including working with several cloud computing startups. His industry experience includes tenure as CTO and CEO of several successful software and cloud computing companies, and upper-level management positions in Fortune 500 companies. In addition, he was an associate professor of computer science for eight years, and continues to lecture at major technical colleges and universities, including University of Virginia and Arizona State University. He keynotes at many leading technology conferences, and has several well-read columns and blogs. Linthicum has authored 10 books, including the ground-breaking "Enterprise Application Integration" and "B2B Application Integration." You can reach him at [email protected] Or follow him on Twitter. Or view his profile on LinkedIn.

Comments (3) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
rabcraig 09/12/08 06:38:01 AM EDT

actually all the services should be like craigslist , simple fast and very cool.

Anna 04/26/06 06:40:50 PM EDT

Do the major SaaS players realize the big guys may want to buy them up? Salesforce.com and NetSuite were born in the pockets of Oracle's Larry Ellison. I'm sure they always know it's a possibility but are counting on Larry's good business sense to let them stay independent.

SYS-CON India News Desk 04/26/06 11:17:04 AM EDT

I caught a review in Fast Company of an interview that Craig Newmark of Craigslist had with ABC's Nightline News. I didn't see the interview myself, but Fast Company did a good job highlighting the more important points, including the fact that Craigslist, which offer free classified ads, is killing the local newspapers.

@MicroservicesExpo Stories
We have Continuous Integration and we have Continuous Deployment, but what’s continuous across all of what we do is people. Even when tasks are automated, someone wrote the automation. So, Jayne Groll evangelizes about Continuous Everyone. Jayne is the CEO of the DevOps Institute and the author of Agile Service Management Guide. She talked about Continuous Everyone at the 2016 All Day DevOps conference. She describes it as "about people, culture, and collaboration mapped into your value streams....
In our first installment of this blog series, we went over the different types of applications migrated to the cloud and the benefits IT organizations hope to achieve by moving applications to the cloud. Unfortunately, IT can’t just press a button or even whip up a few lines of code to move applications to the cloud. Like any strategic move by IT, a cloud migration requires advanced planning.
Did you know that you can develop for mainframes in Java? Or that the testing and deployment can be automated across mobile to mainframe? In his session and demo at @DevOpsSummit at 21st Cloud Expo, Dana Boudreau, a Senior Director at CA Technologies, will discuss how increasingly teams are developing with agile methodologies, using modern development environments, and automating testing and deployments, mobile to mainframe.
“Why didn’t testing catch this” must become “How did this make it to testing?” Traditional quality teams are the crutch and excuse keeping organizations from making the necessary investment in people, process, and technology to accelerate test automation. Just like societies that did not build waterways because the labor to keep carrying the water was so cheap, we have created disincentives to automate. In her session at @DevOpsSummit at 20th Cloud Expo, Anne Hungate, President of Daring System...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
Docker is on a roll. In the last few years, this container management service has become immensely popular in development, especially given the great fit with agile-based projects and continuous delivery. In this article, I want to take a brief look at how you can use Docker to accelerate and streamline the software development lifecycle (SDLC) process.
Cloud adoption is often driven by a desire to increase efficiency, boost agility and save money. All too often, however, the reality involves unpredictable cost spikes and lack of oversight due to resource limitations. In his session at 20th Cloud Expo, Joe Kinsella, CTO and Founder of CloudHealth Technologies, tackled the question: “How do you build a fully optimized cloud?” He will examine: Why TCO is critical to achieving cloud success – and why attendees should be thinking holistically ab...
DevOps is good for organizations. According to the soon to be released State of DevOps Report high-performing IT organizations are 2X more likely to exceed profitability, market share, and productivity goals. But how do they do it? How do they use DevOps to drive value and differentiate their companies? We recently sat down with Nicole Forsgren, CEO and Chief Scientist at DORA (DevOps Research and Assessment) and lead investigator for the State of DevOps Report, to discuss the role of measure...
If you are part of the cloud development community, you certainly know about “serverless computing”, almost a misnomer. Because it implies there are no servers which is untrue. However the servers are hidden from the developers. This model eliminates operational complexity and increases developer productivity. We came from monolithic computing to client-server to services to microservices to serverless model. In other words, our systems have slowly “dissolved” from monolithic to function-by-func...
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single-threaded, you can effectively identify hot spots in your serverless code. In his session at @DevOpsSummit at 21st Cloud Expo, Dave Martin, Product owner at CA Technologies, will give a live demonstration and code walkthrough, showing how ...
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, discussed how automation can provide the dynamic management required to cost-effectively deliver microservices and container solutions at scale. He also discussed how flexible automation is the key to effectively bridging and seamlessly coordinating both IT and developer needs for component orchestration across disparate clouds – an increasingly important requirement at today’s multi-cloud enterprise.
Many organizations are now looking to DevOps maturity models to gauge their DevOps adoption and compare their maturity to their peers. However, as enterprise organizations rush to adopt DevOps, moving past experimentation to embrace it at scale, they are in danger of falling into the trap that they have fallen into time and time again. Unfortunately, we've seen this movie before, and we know how it ends: badly.
IT organizations are moving to the cloud in hopes to approve efficiency, increase agility and save money. Migrating workloads might seem like a simple task, but what many businesses don’t realize is that application migration criteria differs across organizations, making it difficult for architects to arrive at an accurate TCO number. In his session at 21st Cloud Expo, Joe Kinsella, CTO of CloudHealth Technologies, will offer a systematic approach to understanding the TCO of a cloud application...
API Security has finally entered our security zeitgeist. OWASP Top 10 2017 - RC1 recognized API Security as a first class citizen by adding it as number 10, or A-10 on its list of web application vulnerabilities. We believe this is just the start. The attack surface area offered by API is orders or magnitude larger than any other attack surface area. Consider the fact the APIs expose cloud services, internal databases, application and even legacy mainframes over the internet. What could go wrong...
With Cloud Foundry you can easily deploy and use apps utilizing websocket technology, but not everybody realizes that scaling them out is not that trivial. In his session at 21st Cloud Expo, Roman Swoszowski, CTO and VP, Cloud Foundry Services, at Grape Up, will show you an example of how to deal with this issue. He will demonstrate a cloud-native Spring Boot app running in Cloud Foundry and communicating with clients over websocket protocol that can be easily scaled horizontally and coordinate...
In his session at 20th Cloud Expo, Chris Carter, CEO of Approyo, discussed the basic set up and solution for an SAP solution in the cloud and what it means to the viability of your company. Chris Carter is CEO of Approyo. He works with business around the globe, to assist them in their journey to the usage of Big Data in the forms of Hadoop (Cloudera and Hortonwork's) and SAP HANA. At Approyo, we support firms who are looking for knowledge to grow through current business process, where even 1%...
The goal of Continuous Testing is to shift testing left to find defects earlier and release software faster. This can be achieved by integrating a set of open source functional and performance testing tools in the early stages of your software delivery lifecycle. There is one process that binds all application delivery stages together into one well-orchestrated machine: Continuous Testing. Continuous Testing is the conveyer belt between the Software Factory and production stages. Artifacts are m...
From manual human effort the world is slowly paving its way to a new space where most process are getting replaced with tools and systems to improve efficiency and bring down operational costs. Automation is the next big thing and low code platforms are fueling it in a significant way. The Automation era is here. We are in the fast pace of replacing manual human efforts with machines and processes. In the world of Information Technology too, we are linking disparate systems, softwares and tool...